Labour proposes year's paid leave in new child policy

The Labour party has unveiled a €1

The Labour party has unveiled a €1.5 billion childcare policy, which it says would provide 12 months of paid maternity and parental leave, along with additional direct subsidies to parents of up to €200 for a child a month.

In the first detailed costed childcare policy by a political party in advance of a general election, Labour is also advocating one year's free pre-school education for every child in the country.

The subsidies would be an addition to the current levels of child benefit, which range between €141 and €167 a child a month.

The total cost of Labour's additional measures would be €1.533 billion a year, the party claims, two thirds of the cost being the additional direct subsidies.

READ MORE

Childcare is expected to be a key battleground policy in the run-up to the general election in 2007.

The Labour Party's announcement comes in advance of a childcare package which is expected to be included in December's budget.

The Government is examining proposals such as increasing paid parental leave and child benefit for under-fives by up to 30 per cent, and increasing subsidised childcare places in disadvantaged areas.

Launching the policy yesterday, Labour leader Pat Rabbitte said it was aimed at providing choice to parents on the type of childcare they wished to provide for their children, including the ability to remain at home to look after children themselves.

"Supporting the choice of parents as well as putting children first are at the centre of our policy approach," he said.

However, he acknowledged that implementing some of the proposals, notably the provision of free pre-school places, would be a political challenge and that it would take five years to implement the plan in full.

He also ruled out any taxation or means-testing on subsidies and child benefit.

A central aspect to the package would be the increase in paid maternity and parental leave from its current level of 18 weeks to 52 weeks, with an option for fathers to take part of that time.

Parents would also be given a legal right to a career break of up to three years, with a right to part-time work.

The €259 million cost of the measure would be met by existing social insurance payments.

Parents would also receive an early-years subsidy of €50 a week for a child from the end of paid parental leave, which would be paid until the child entered pre- school.

One year's free pre-school would then be provided, before the child enters primary school.

Throughout the primary school years parents would receive a €25 a week early-years subsidy.

The annual cost of both early- years subsidies has been estimated by the party to be just over €1 billion.

Labour is also proposing the provision of free pre-school places for every child for a year. This would require a significant increase in the numbers of places available.

The €1.5 billion bill does not include the cost of providing these places, although the party claims the cost could be kept relatively low through the use of existing school campuses.

The party is also proposing a package of measures designed to improve the quality of existing measures, including an €8,000 tax allowance for childminders working in their own homes.

Labour Senator Kathleen O'Meara, who put together the policy on behalf of the party, said it gave "equal recognition to the contribution of all parents" and provided financial support "no matter how the child is cared for or by whom".

Labour's proposals

What the party says it will cost

Early-years subsidy €1,071 million

Paid parental leave €259 million

Free pre-school €163 million

Quality measures €40 million

Total cost €1,533 million